U.S. Says It Will Impose 'Toughest Sanctions in History' on Iran

LBCI Lebanon

U.S. & Iranian flags.

U.S. Treasury chief Scott Bessent said the United States will impose "the toughest sanctions in history" on Iran, a move he suggested would lessen the need for new major military operations.

Bessent's comments on Thursday followed President Donald Trump's threat a day earlier of "Economic Warfare" and warning of economic consequences against any country that provided "any type ‌of lifeline to Iran." Bessent promised details next week.

"I'm not sure why oil has popped up on this," Bessent told CNBC. "If we are doing the maximum economic pressure, then that means that likely there will not be a large-scale kinetic restart," he said, using a term referring to military force.

Before Bessent spoke, Iran's foreign ministry said it condemned U.S. economic and trade sanctions, calling them "economic terrorism" that would not "create even the slightest hesitation in Iranians’ determination to safeguard Iran’s independence, dignity and national sovereignty."

Bessent told CNBC he would share more details on the latest package and "talk about exactly what we're going to do" on Iran at a press conference on Monday.

"It is a one-two punch. We have the blockade (on Iran), and we are going to have the toughest sanctions in history," he added, referring to a U.S. naval blockade imposed on Iran in April and paused for a month in mid-June.

"It is going to work in Iran and we are going to collapse this regime. It is time for our ‌allies and the ⁠rest of the world to make a decision," he said.

Oil prices rose to their highest level in more than three weeks on Thursday after the United States threatened financial penalties aimed at bringing an end to the nearly six-month-old conflict, which has disrupted millions of barrels of Middle Eastern oil supplies.

Thousands of people have been killed in the conflict, which has drawn in Gulf states and unsettled global markets as Iran demonstrated its ability to restrict shipping through the Strait of Hormuz, a key waterway that carried around one-fifth of globally traded oil before February.

The United States and Iran have announced ceasefire agreements twice, in April and June, with the aim of restoring the free flow of shipping through the Strait of Hormuz as part of efforts to end the conflict. Both agreements, however, quickly collapsed.

Iran has endured near-continuous economic sanctions for almost 50 years, dating back to the Islamic Revolution in 1979.

When asked if the United States could target China for doing business with Iran, Bessent said many conversations were best to have in private.

"Keep in mind that the Chinese get 50% (of their) energy... from the Gulf. So it would do them a big service to get with the program," he said.

China's embassy in Washington said "sanctions ⁠and pressure do not help resolve the problem."

"China calls on the relevant parties to take responsible actions and resolve the issue through political and diplomatic means," according to an embassy spokesperson.

In a social media message on Wednesday, Trump promised "Economic Warfare and Isolation on an unprecedented scale." He did not say what specific steps the U.S. would take or name any country, though the warning would appear to ⁠extend to U.S. allies that have helped mediate peace talks.

"ANY country that allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran will itself face TREMENDOUS Economic Consequences," Trump wrote.



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